Circle, a stablecoin issuer, recently made headlines by becoming the first company to receive a license to issue stablecoins under the new MiCA regulations in the European Union. MiCA, which went into effect on June 1, required stablecoin issuers to register in any EU country to continue operating in the region.
In response to this requirement, Circle secured an Electronic Money Institution (EMI) license in France. This license will allow Circle to issue its popular USDC stablecoin as well as a new stablecoin called EURC, which is specifically targeted towards European customers.
Jeremy Allaire, the co-founder and CEO of Circle, took to social media to announce this exciting development. He stated that Circle is now compliant with the new EU stablecoin laws and is the first global stablecoin issuer to do so. Starting from July 1st, Circle will be issuing both USDC and EURC to customers in Europe.
By obtaining this license and being proactive in complying with regulations, Circle has positioned itself ahead of its competitors, such as Tether, the issuer of USDT. Tether’s USDT stablecoin is currently the most widely used in the market, but Circle’s move to issue EURC to users in 21 EU countries could potentially disrupt the stablecoin sector.
Circle’s decision to establish its operations in France was strategic. France has been a pioneer in implementing clear regulations for the crypto and digital asset sector within the EU. Allaire explained that France’s proactive approach to regulating crypto trading firms and digital tokens made it the ideal location for Circle to base its operations.
Looking ahead, Allaire expressed confidence in Circle’s choice to register in France. He highlighted the collaborative effort between Circle and the French regulatory authorities over the past two years to ensure compliance with the new MiCA regulatory framework.
Overall, Circle’s achievement of securing the first EU license to issue stablecoins under MiCA marks a significant milestone for the company and the broader stablecoin market. With regulatory clarity and compliance in place, Circle is well-positioned to expand its presence and offerings in the European market, providing customers with access to a range of stablecoin options.